CRA Amendment Filed Addressing City Concerns

Background:

SB 1242 (McClain), as originally filed, would have required all existing Community Redevelopment Agencies (CRAs) to sunset by 2045, prohibited new CRAs from being created after July 1, 2025, and banned new projects or debt after October 1, 2025. The bill is scheduled to be heard in the Senate Rules Committee on Monday, April 21, at 2:00 p.m.

Update:

Senator McClain has filed Amendment Barcode: 232314, which substantially rewrites SB 1242 in response to concerns raised by cities. The amendment removes many of the most harmful provisions while still adding new limitations on CRA activities.

Key Changes in the Amendment:

• Removes the requirement for CRAs to sunset or terminate by 2045.
• Removes the ban on creating new CRAs.
• Requires CRA boards to be composed of city elected officials, but allows appointment of up to two additional individuals to serve on a seven-member board.
• Prohibits changing CRA boundaries—CRAs may not add or remove land from their current boundaries.
• Prohibits CRA funding for hotels and banquet facilities.
• Prohibits CRA funding for concerts, festivals, holiday events, parades, or similar activities.
• Requires CRAs to sunset on the date identified in their CRA plan for completion of redevelopment projects funded by increment revenues.
• Prohibits extension of CRA bond maturities beyond the CRA plan’s termination date.

What You Can Do:

Contact members of the Senate Rules Committee to support this amendment as a substantial improvement over the original bill.

Click here for contact information.

Please contact David Cruz with any questions.